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The unintended consequences of internet diffusion: Evidence from Malaysia

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  • Miner, Luke

Abstract

Can the introduction of the Internet undermine incumbent power in a semi-authoritarian regime? I examine this question using evidence from Malaysia, where the incumbent coalition lost its 40-year monopoly on power in 2008. I develop a novel methodology for measuring Internet penetration, matching IP addresses with physical locations, and apply it to the 2004 to 2008 period in Malaysia. Using distance to the backbone to instrument for endogenous Internet penetration, I find that Internet exposure accounts for 6.6 points, nearly half the swing against the incumbent party in 2008. I find limited evidence of increased turnover, and no evidence of an effect on turnout.

Suggested Citation

  • Miner, Luke, 2015. "The unintended consequences of internet diffusion: Evidence from Malaysia," Journal of Public Economics, Elsevier, vol. 132(C), pages 66-78.
  • Handle: RePEc:eee:pubeco:v:132:y:2015:i:c:p:66-78
    DOI: 10.1016/j.jpubeco.2015.10.002
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    More about this item

    Keywords

    Internet diffusion; Political economy of the media; Malaysian elections;
    All these keywords.

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • L82 - Industrial Organization - - Industry Studies: Services - - - Entertainment; Media
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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